Return on investment for a given investment center can be split into two components: profit margin and investment turnover.

Question

Quizplus · Accepted Answer

This statement is true. Return on investment (ROI) is calculated as the product of profit margin and investment turnover. Profit margin is the percentage of sales that result in profit, while investment turnover refers to the number of times the investment center's assets are used to generate revenue.

Return on Investment for a Given Investment Center Can Be